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European press roundup: Ukraine conflict and financing Europe’s economy

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Euranet Plus News Agency Trans-European press review Friday, November 14, 2014

This week, our press review of European media focuses on the Russia-Ukraine conflict which is stepping up because of Russia’s military presence in eastern Ukraine, which was confirmed by NATO and other international observers. The Polish newspaper Wiborcza worried about “another Cold War” and the Italian newspaper Corriere della Sera said NATO should intervene in Ukraine. Besides this conflict, Greece, Portugal and Estonia focused on their economies.

Italy: NATO should intervene in Ukraine (Corriere della Sera)

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During the 26th emergency meeting of the United Nations Security Council on November 12, NATO confirmed that Russia is sending troops, artillery and air defence systems into eastern Ukraine. These facts were reported by the Organization for Security and Cooperation in Europe (OSCE).

Russia doesn’t respect the ceasefire agreed with Ukraine last September.

According to the Italian daily newspaper Corriere della Sera, NATO should intervene in Ukraine: “Even if most experts believe the danger of nuclear weapons being used is exaggerated, many think it possible that a total conventional war will start in Ukraine. Perhaps it has already begun”, stressed the journalist.

The journalist continued saying that NATO should react otherwise “Putin will have achieved his main goal,” warned the newspaper.

The article also pointed out the declarations of Jens Stoltenberg, former Prime Minister of Norway, who in a few weeks will be the new Secretary General of NATO, stressing that Ukraine is not a NATO member. But he said that “this conflict cannot be a military solution. So, NATO calls on Russia to respect the Ukrainian border, to withdraw from Ukraine and Eastern Europe and not to support the separatists, because this threatens the ceasefire.”

Related to the last announcements of Russian troops and military equipment into eastern Ukraine, a comment published this week in the Polish newspaper Wiborcza worried about a possible return of the Cold War.

Poland: Poland in a dangerous Europe (Wiborcza)

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The Polish economist and writer Waldemar Kuczyński published a comment in the Polish newspaper Wiborcza on the possible return of the Cold War.

He started saying that after 1989 people have been harbouring the illusion that the Cold War is over, that a war in Europe is impossible or even that such history has ended.

However, now the present shows a different vision. The author stressed that on February 28, when Putin received the “permission” to deploy troops in Ukraine, the illusion of 1989 evaporated in a flash.

He continued writing that “the 25-year-long era of the ‘end of history’ ended. Western Europe is not asleep anymore. But we, here in Poland, may not”.

He added that the events of February 28 forced Polish authorities and politicians to seriously consider what should be done to strengthen Poland in all the dimensions which matter in a Europe which may, but does not have to, become a theatre of war.

However, the author concluded by saying that Poland should talk and negotiate with Russia. Unfortunately, he wrote, for a number of months now Poland has clearly learned to the best extent possible that being Russia’s neighbour remains perilous.

We continue this press reviw with trans-European focus on financing the EU’s economy and dealing with the budget.

Greece: the puzzle of the financing of the European economy (Skai)

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An online article was published this week by the Skaï Radio, one Greek Euranet Plus partner Euranet Plus, about the 300 billion euro plan for investments in the EU.

The article said this plan, announced by Juncker, the European Commission President, is still not clear and many questions remain.

The plan doesn’t give any details over the role of the European Investment Bank (EIB), the use of EU funds or the promotion of long-term investments by European funds.

Briefly, wrote the journalist, this is a difficult puzzle for the Commission, which must create a reliable package at record speed.

It was recalled that the amount of the investment package of 300 billion euros would be disposed within three years by the mobilization of public and private investment.

And the article concluded with a statement of the Finance Minister of the Netherlands, Jeroen Dijsselbloem : “The package of 300 billion announced by President Juncker is necessary”, but “we also know that the possibilities for using public money are very limited.”

The Italian newspaper Il Sole 24 Ore focused on the own Italian economy this week.

Italy: GDP does not grow, but the debt does. Italy is in a spiralling nightmare (Il Sole 24 Ore)

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Il Sole 24 Ore, which is related to the Italian Euranet Plus station Radio 24 II Sole, warned about the bad state of Italy’s economy and reported that Europe could say “no, dear Italy, you are deviating too far from the path of return from government debt. So, correct it and insist on fiscal consolidation,” wrote the journalist.

The article focused on possible nightmare scenarios and reported that Italy has to get out of this spiral and that it is not enough to say “stop the lessons of Brussels, your feedback does not worry us, we are on track.”

The European Commission’s report on the macroeconomic imbalances showed Italy’s high debt and weak external competitiveness. But the journalist reported that this was just an early warning based on the numbers of Renzi introduced by the government in September.

Between November 24 and 25, the first assessment of the European Commission on the Law of Stability and early 2015 predictions is expected and the European Commission will start a new mission to update the report on macroeconomic imbalances.

And Portugal also focused on its own EU budget problems.

Portugal: budgetary pharisaism (Sapo)

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The Portuguese news portal Sapo reported that the European Commission (EC) and the International Monetary Fund (IMF) are not the only institutions whose predictions can be undervalued by the national government, as attempted by the Portuguese minister of finance.

The journalist explained that the EC and IMF’s authority is unquestionable, not because they always get it right, but because they are the Portuguese government’s “compagnons de route”, sharing its strategic vision for the country, and, in the specific case of the Commission, because it is the institution the government has to deal with regarding the compliance to EU budgetary rules.

The Portuguese government has said that the IMF and the EC have been wrong. Quite rightly so, but it turns out that they have always been wrong with the government, not against it, continued the author.

Therefore, one of two things must happen: either the reasoning for the compliance with the budgetary rules is maintained and the Portugueses prime minister must explain what will be done to achieve that goal, namely with regards to additional austerity measures.

Or it is acknowledged that the rules are not likely to be fulfilled and there is a need to adjust the budgetary policy to the present reality, giving way to a serious debate about national duties in budgetary matters and how to reconcile those rules with the individual EU member country’s economic and social development.

However, the article stressed that “what cannot happen is this budgetary pharisaism, in which the rules are, in reality, a farce, a mere resource to try and make illegal its own possibility of a political alternative.”

There are also non-Eurozone countries which help each other financially. As Norway and Switzerland do with Estonia, but will this last forever? That is the question of an article published this week in the Estonian newspaper Postimee.

Estonia: Norwegian and Swiss financing aid not forever?

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According to “Postimee”, Switzerland and Norway have supported Estonia with dozens of millions of euros. However, Swiss grants are hanging on a referendum, warned the newspaper.

“Foreign grants have become the main financial investment for the country”, the academic Urmas Varblane claimed during a financial conference. And he added that “thanks to foreign aid, it has been possible to keep the state.”

The journalist explained that from outside the EU, financial help flows through three cooperation programmes, the Estonian and Swiss cooperation programmes, Norwegian grants and European Economic Area (EEA) grants.

All three programmes are aimed at reducing the social and economic inequality of states that joined the EU in 2004 or later, but they are also available for Greece, Portugal and until now even Spain.

However, now the future of these programs is unclear. Talks are underway regarding Norwegian and EEA support for Estonia until 2019, but they are not making too much progress.

That’s it for this week. Read all our last press reviews – until next week.

 

  • Author: Laeticia Markakis, Euranet Plus News Agency
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Euranet Plus News Agency Week-End Surfing Tip
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    One week in Europe: Juncker admits tax evasion problem, historical comet landing and EU lacks ebola master plan
    One week in Europe: Juncker admits tax evasion problem, historical comet landing and EU lacks ebola master plan | November 15, 2014 | Euranet Plus News Agency | English
    After avoiding questions about the Luxleaks tax evasion scandal, EU Commission President, Jean-Claude Juncker, finally spoke up and defended himself and his country, arguing no laws had been breached. He did, however, admit that there has probably been an excess of fiscal engineering in Luxembourg and he assured that the Commission will act to stop tax avoidance. It didn’t persuade all and critics still call for Juncker to step down. Also this week, the Parliament’s Ebola rapporteur called for more coordination between member states, tensions rose in Eastern Ukraine, the European Court of Justice presented a sensitive ruling and the EU wrote history landing on a comet.


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